Decision No. 1623/QD-NHNN dated August 23, 2012 of the Ministry of Finance on the gold bar production organization and management of the State Bank of Vietnam

DECISION

ON THE GOLD BARPRODUCTIONORGANIZATION AND MANAGEMENT OF THE STATE BANK OF VIETNAM

THE GOVERNOR OF STATE BANK

Pursuant to the Law on the State Bank of Vietnam No.46/2010/QH12, of June 16, 2010;

Pursuant to the Law on Credit Institutions No.47/2010/QH12, of June 16, 2010;

Pursuant to the Government s Decree No. 96/ 2008/ND-CP of August 26, 2008, defining the functions, tasks, powers and organizational structure of the State Bank of Vietnam;

Pursuant to the Government’s Decree No. 24/2012/ND-CP, of April 03, 2012 on management of gold business; 

At the proposal ofDirector of Foreign Exchange Management Department;

DECIDES:

SECTION 1. GENERAL REGULATION

Article 1. Scope of regulation

This Decision regulates on gold barproductionorganization and management of the State bank of Vietnam (hereinafter referred to as the State bank).

Article 2. Principle of gold barproductionorganization

1.The State bank decides gold barproductionon the basis of target on operation of the monetary policy and gold bar supply and demand in the market.

2.The State bank assigns the SaiGon Jewelery one-member limited liability company – SJC (hereinafter referred to as SJC) to process gold barsunder provisions on this Decision.

3.The State bank shall decide limited level, production time and goldmaterialsource used as raw materials for gold bar production organization.

4.The State bank shall organize production of gold barswith 99.99% content, engravedletters and figures indicating weight, quality and symbol code of SJC (hereinafter referred to as SJC gold bar). The State bank decides weight of produced SLC gold barsin each period.

5.The State bank approves cost of SJC gold bar processing each period on the basis of processing expense, expected profit and applied taxs.

Article 3. Gold source used as raw materials for SJC gold bar production

1.Gold materials of the State bank.

2.Gold bars that are permitted by the State bank to product in each period, except for SJC gold bars (hereinafter referred to asnon-SJCgold bars).

3.SJC gold bars produced and processed by SJC, possessing at least one of following characteristics:

a) Insufficient weight, be cut/ be ground, abrasive;

b) Be scratched;

c) Be engraved additional symbols, signs not be ownedbySJC;

d) Be deformed.

4.Other gold types are decided by the State bank in each period.

SECTION 2. SJC GOLD BAR PRODUCTION

Article 4. Plan on SJC gold bar production

Pursuant to provisions on Article 2 of this Decision,the State bank decides plan on SJC gold bar production in each period, in which includes the fundamental contents as follows:

1.Gold source used as raw materials for SJC gold bar production;

2.Limited level of SJC gold bar production;

3.Time of SJC gold bar production.

Article 5. Processing procedure of SJC gold bar from gold materials of the State bank

1.The State bank signsaprinciple contract of gold bar processing between the State bank and SJC (hereinafter referred to as principle contract of gold bar processing).

2.When having demand of SJC gold bar processing, the State bank send a written request for gold bar processing to SJC including the following main contents:

a) Weigh of SJC gold bar need tobeprocessed;

b) Time of processing;

c) Kind of SJC gold bar need tobeprocessed.

3.Within 02 (two) working days after receiving the written request for SJC gold bar processing of the State bank, SJC shall send a report to the State bank on SJC gold bar processing plan.

4.SJC receives gold materials of The State bank at storehouse of SJC and execute quality test of gold materials before processing SJC gold bars as prescribed in the principle contract of gold bar processing and the written request for SJC gold bar processing of the State bank.

5.SJC performs SJC gold bar processing.

6.SJC hands over SJC gold bar products for The State bank at its storehouse and receives charges of processing as prescribed in the principle contract of gold bar processing and the written request for SJC gold bar processing of the State bank.

7.The receipt, test of gold materials, SJC gold bar processing and handing over SJC gold bar products are performed under supervision of the State bank’s supervision team on gold bar processing (hereinafter referred to as the State bank s supervision team).

Article 6. Process of shifting non-SJC gold bars into SJC gold bars

1.Credit institutions, enterprises business in gold bar trading as prescribed by law shall send a written proposal to the State bank (Department of Foreign Exchange Management) for permit of shifting non-SJC gold bars with lawful and valid origin into SJC gold bars.

2.Pursuant to provisions in clause 1, Article 2 of this Decision, the State bank shall consider and decide on permission of shifting non-SJC gold bars into SJC gold bars. Within 30 (thirty) working days after receiving the written proposal for permission of the State bank in shifting non-SJC gold bars into SJC gold bars, the State bank shall have a written approval of refusal for shifting non-SJC gold bars into SJC gold bars. If approving, the State bank sends the written approval to credit institutions, enterprises business in gold bar trading that proposed for shifting non-SJC gold bars into SJC gold bars, and send to SJC for performance of processing.

3.Within 02 (two) working days after receiving the written approval of the State bank for shifting non-SJC gold bars into SJC gold bars, SJC shall send written report to the State bank on SJC gold bar processing plan.

4.Pursuant to the written approval of the State bank for shifting non-SJC gold bars into SJC gold bars, credit institutions, or enterprises business in gold bar trading shall conclude contract of gold bar processing with SJC.

5.SJC performs SJC gold bar processing.

6.SJC hands over SJC gold bar products to credit institutions, enterprises business in gold bar trading under signed contract of gold bar processing with SJC.

7.The receipt, test of gold materials, SJC gold bar processing and handing over SJC gold bar products are performed under supervision of supervision team on gold bar processing of the State bank’s Ho Chi Minh City branch (hereinafter referred to as the supervision team of State bank’s Ho Chi Minh City branch).

8.SJC’s shifting non-SJC gold bars into SJC gold bars is performed in according to clause 1, clause 2, clause 3, clause 5 and clause 7 of this article.

Article 7. Reprocessing procedure of SJC gold bars

1.SJC sends a written request to the State bank for permission of reprocessing SJC gold bars specified in clause 3, Article 3 of this Decision, in which state clearly weight of SJC gold bar expected to reprocess and processing time.

2.After considering the request of SJC, the State bank shall send a written approval for reprocessing SJC gold bars to SJC.

3.Within 02 (two) working days after receiving the written approval of the State bank, SJC sends a written report to the State bank on SJC gold bar reprocessing plan.

4.SJC performs reprocessing SJC gold bars under the written approval of the State bank under supervision of supervision team of the State bank’s Ho Chi Minh City branch.

Article 8. Processing procedure of SJC gold bars from other gold types

Processing procedure of SJC gold bars from other gold types is performed under decision of the State bank in each period.

SECTION 3. SUPPERVISION OF GOLD BAR PROCESSING

Article 9. Management of moulds for SJC gold bar production

1.The director of State bank’s Ho Chi Minh City branch shall inventory, receive handing over, seal and preserve mould for SJC gold bar production after right this Decision comes into effect.

2.The director of State bank’s Ho Chi Minh city branch shall open seal of mould for SJC gold bar production and hand over it for the supervision team of the State bank or the supervision tesm of the State bank’s Ho Chi Minh city branch when required in writing or approval in writting of the State bank relating to SJC gold bar processing.

3.When ending each time of gold bar processing, the director of State bank’s Ho Chi Minh City branch shall implement sealing the mould for SJC gold bar production.

4.The inventory, receipt of handing over and opening seal of the mould for SJC gold bar production are performed under the Regulation on management of the mould for SJC gold bar production, gold bar stamping machine and supervision ofprocessing SJC gold bars from gold materials not owned by the State bank of Vietnam and the Regulation on supervision ofprocessing SJC gold bars from gold materials of the State bank of Vietnam.

Article 10. Suppervision of gold bar processing

1.The Governor of the State bank decides establishment of the supervision team of the State bank in order to supervise the processing gold bars from gold materials specified in clause 1, Article 3 of this Decision.

2.The director of State bank’s Ho Chi Minh city branch decides establishment of the supervision team of State bank’s Ho Chi Minh city branch in order to supervise the processing gold bars from gold materials specified in clause 2, clause 3, Article 3 of this Decision.

3.The supervision team specified in clause 1, clause 2 of this Article shall implement tasks specified in the Regulation on supervision ofprocessing SJC gold bars from gold materials of the State bank of Vietnam and the Regulation on management of the mould for SJC gold bar production, gold bar stamping machine and supervision ofprocessing SJC gold bars from gold materials not owned by the State bank of Vietnam.

SECTION 4. RESPONSIBILITY OF RELEVANT AGENCIES, ORGANIZATIONS

Article 11. Responsibility of SJC

1. To hand over the mould for SJC gold bar production in order to perform sealing when required by the State bank.

2.To report to the State bank on processing procedure of SJC gold bar.

3.To install system of supervising cameras as prescribed in the Regulation on management of the mould for SJC gold bar production, gold bar stamping machine and supervision of processing SJC gold bars from gold materials not owned by the State bank of Vietnam.

4.To test weigh, quality of gold materials used for processing SJC gold bar.

5.To process SJC gold bars in according to the written request or approval for SJC gold bar processing of the State bank.

6.To ensure safety for gold materials, SJC gold bar products and mould for SJC gold bar production during processing and keeping in storehouse of SJC.

7.To coordinate in sealing and opening the seal of mould for SJC gold bar production and SJC gold bar stamping machine.

8.To take responsibility for exactness of gold materials specified in clause 3, Article 3 of this Decision in order to process gold bar.

9.To keep invoices, vouchers for gold materials used for processing SJC gold bar.

10.To sign the record on receipt of gold materials and SJC gold bar products.

11.To be inspected, supervised by the State bank and relevant agencies.

12.In time of processing SJC gold bars, everyday, not later than 11h00, to send a written report to the State bank on quantity of SJC gold bars processed in the preceding working day.

13.To take responsibility for weigh, quality of SJC gold bar products.

14.To implement provisions in this Decision, the principle contract of processing SJC gold bars, the Regulation on supervision of processing SJC gold bars from gold materials of the State bank of Vietnam and the Regulation on management of the mould for SJC gold bar production, gold bar stamping machine and supervision of processing SJC gold bars from gold materials not owned by the State bank of Vietnam and other relevant provisions.

Article 12. Responsibilities of credit institutions and enterprises business in gold bar trading that have non-SJC gold bars being permitted by the State bank to shift into SJC gold bars.

1.To take responsibility for origin and legality of non-SJC gold bars being permitted by the State bank to shift into SJC gold bars.

2.To keep invoices, vouchers of non-SJC gold bars used for processing SJC gold bar, servicing fot inspection and exemination.

Article 13. Responsibility of the State bank’s Ho Chi Minh city branch

1.To inventory, receive handing over, seal and preserve the mould for SJC gold bar production after right this Decision comes into effect.

2.To open seal of the mould for SJC gold bar production before each time of processing and sealing of the mould for SJC gold bar production after ending processing.

3.To manage and keep key of the safe preserving the mould for SJC gold bar production

4.To establish the supervision team as prescribed in clause 2, Article 10 of this Decision.

5.To implement tasks specified in this Decision, the Regulation on supervision of processing SJC gold bars from gold materials of the State bank of Vietnam and the Regulation on management of the mould for SJC gold bar production, gold bar stamping machine and supervision of processing SJC gold bars from gold materials not owned by the State bank of Vietnam.

6.To perform other tasks relating to processing SJC gold bar when be assigned by the Governor of the State bank.

Article 14. Responsibility of Departments, Administrations under the State bank

1.The Department of Foreign Exchange Management shall:

a) To propose and submit to the Governor of the State bank for the plan on SJC gold bar production;

b) To be centre of drafting and submission to the Governor of the State bank for approving the principle contract of gold bar processing with SJC.

a) To be centre of submission to the Governor of the State bank for the Regulation on management of the mould for SJC gold bar production, gold bar stamping machine and supervision of processing SJC gold bars from gold materials not owned by the State bank of Vietnam.

d) To notice in writing on request for processing gold bars or approval for processing gold bars specified in Article 5, Article 6 and Article 7 of this Decision to SJC and relevant organizations;

dd) To be centre of submission to the Governor for the notification written to the Ho Chi Minh city People’s Committee in order to coordinate in direction when having plan on SJC gold bar production.

e) To conclude the principle contract of processing SJC gold bars under authorization of the Governor of State bank.

2.The Department of Issuance and Fund Warehouse shall:

a) To instruct receipt, preservation, transport of the State bank’s gold;

b) To be centre to transfer gols materials from warehouse of the State bank to warehouse of SJC and transfer SJC gold bar products processed from gold material of the State bank from warehouse of SJC to warehouse of the State bank;

c) To coordinate with SJC in exemination of weight and test of quality for gold materials assigned by the State bank to SJC in order to process SJC gold bar;

b) To be centre to transfer gols materials from warehouse of the State bank to warehouse of SJC and transfer SJC gold bar products processed from gold material of the State bank from warehouse of SJC to warehouse of the State bank;

dd) To tally and seal SJC gold bar products processed from gold materials of the State bank after SJC finish the gold bar processing.

e) To pay the processing charges to SJC and account into operational expenses of the State bank in case of processing SJC gold bars from gold materials of the State bank.

3.The Legal Affair Department shall coordinate to compile and appraise the legality of the principle contract of processing gold bar.

4.The Financial and Accounting Department shall:

a) To be the centre to submit to the Governor to approve rate of charges of processing SJC gold bar from gold materials of the State bank in each period.

b) To guide the accounting regime of receipt, gold transfer in processing SJC gold bar from gold materials of the State bank.

c) To coordinate with the Department of Issuance and Fund Warehouse to pay the processing charges to SJC and account into operational expenses of the State bank in case of processing SJC gold bars from gold materials of the State bank.

5.The Internal Audit Department shall:

a) To be centre of formulation and submission to the Governor for approval of the Regulation on supervision of processing SJC gold bars from gold materials of the State bank of Vietnam.

b) To submit to the Governor to establish the Supervision team of the State bank including officers of units: The internal Audit Department, The Department of Issuance and Fund Warehouse, the representative Office of the State bank at HoChiMinh city and the State bank’s Ho Chi Minh city branch, with a department-level officer being the head.

6.The bank inspection and supervision agency shall inspect, check the gold bar processing of SJC as prescribed by law.

SECTION 5. IMPLEMENTATION PROVISIONS

Article 15. Implementation provisions

1.This Decision takes effect on the signing day.

2.The Chief of office, the Chief Inspector of bank supervision, the director of Foreign Exchange Management Department, director of the Department of Issuance and Funds Warehouse, director of Fianancial and Accounting Department, director of Internal Audit Department, director of Laehal Affair Department, heads of units under the the State bank, director of the State bank’s Ho Chi Minh city branch andchairpersons of Boards of Directors, chairpersons of Member Council, directors general (directors) of SJC and relevant stitutions enterprises business in gold bar trading shall implement this Decision.